Policy Monitoring and Research Centre (PMRC) says it expects Friday’s Presidential address to update the nation on the uptake of the K10 medium-term refinancing facility and encourage more financial institutions to access the funding.
Organization Executive Director Bernadette Zulu told Money FM News that as directed by President Edgar Lungu during his national address in April that the medium-term refinancing facility needed to be directed towards Small and Medium Scale Enterprises (SMEs) that are adversely affected by the impact of the COVID-19, it is justified that the funds go to businesses such as gymnasiums, restaurants, bars, and nightclubs whose businesses had been halted.
Ms. Zulu said the Head of State should also give an update on the performance of the COVID-19 bond and its overall impact in alleviating the negative effects of the pandemic on the economy so far.
“Our expectation is that the President will prioritize to give an overview of the evolution of the COVID-19 pandemic in the country. It is expected that the Presidential address will update the nation on the health measures that the Government of the Republic of Zambia has put in place to upscale and enhance our preparedness, surveillance and response to this COVID-19 threat.”
“In April 2020, Government, through the Bank of Zambia, approved a K10 billion medium-term refinancing facility, which provided funding to commercial banks and non-bank financial institutions for them to restructure, refinance or extend credit to businesses and households on more favorable terms. We expect that the President will give an update on the uptake of this medium-term refinancing facility and encourage more financial institutions to access the funding,” Ms. Zulu stated.
She added that PMRC expects President to also update the nation on the progress made by the task force established and mandated to bring more Zambian products on the floor of major chain stores in shopping malls in a bid to capitalize on the current situation which has presented a new opportunity for domestic agriculture and locally manufactured products to be sold in greater numbers.
“The task force is comprised of representatives from South African owners of chain stores, the Zambia Association of Manufacturers (ZAM), Zambia Farmers Union (ZNFU) and the Zambia Chamber of Commerce and Industry (ZACCI).”
“It is hoped that the local content strategy will also be emphasized. It is also expected that the President will provide an update on the implementation of legislative reforms aimed at addressing emerging issues that hinge on democracy, rule of law and enhanced financial management. On 2nd September 2020, President Edgar Lungu said Cabinet would consider creating an office to oversee all Government procurement to restore people’s faith in public transactions,” she stated.
She added that revisions of the Public Procurement Act also need to provide for reference pricing to strengthen oversight for high-value procurements.
Meanwhile, Ms. Zulu urged the Head of State to attend to fiscal measures that the Government has instituted aimed at easing liquidity in the economy, which may include making additional payments of public service retiree benefits, road contractors and Government suppliers of goods and services.
She said her organization further expects President Lungu to give an update on progress made in supporting the marginalized in society, such as enhanced empowerment of the youth, women and other vulnerable members of society.
“The Social Cash Transfer program, which is aimed at helping to reduce poverty through the transfer of money to persons who meet the specified criteria of vulnerability, may need to be up scaled given the fact that the number of vulnerable people in society may have increased with the advent of COVID-19.”
President Edgar Lungu is expected to officially open the Fifth Session of the Twelfth National Assembly this Friday, September 11th, 2020.